3 tips to adopt a strong and consistent program of vendor collaboration

Every company has vendors that assist them with any number of crucial functions, providing expertise and guidance to assist in growing and managing the business. Each one, whether a CPA, attorney, IT consultant, banker or another important provider, is vital to an organization's success. Thinking of vendors as partners rather than cost centers — and treating them as such — may seem unconventional, but making this paradigm shift can have a lasting, positive impact on your business. Whether you’re the World Series Champions Atlanta Braves with hundreds of partners or a newly opened community bank like Craft Bank with roughly 20, adopting a strong and consistent program of vendor (or partner) collaborative engagement tilts the playing field to your advantage.

As part of a modern and collaborative approach to vendor management, consider the following tips.

1: View your vendors as true partners.

Your vendors should be invested in seeing your company grow and thrive. Chances are high they have worked with other companies like yours, and they have seen what works and what doesn’t. Regardless of what support role they play for your firm, they have an understanding on some level of how your company functions. With some prompting, vendors may be willing to help you assess strengths, weaknesses and opportunities. You are already paying for their services; as part of the relationship, they will throw in their advice if you ask. They may even be honored that you value their opinion. Remember, the best vendor partners are guides, consultants and coaches who want to see you succeed. And at least some portion of their revenue stream depends on your ongoing viability, if not outright success.

2: Even with trusted partners, you should engage in thoughtful “vendor management.” 

Assess every partner’s performance relative to your company, at least annually. Documents such as errors and omissions insurance, compliance, and financial statements, when relevant, should be obtained and reviewed. It might even be helpful to create a short “annual review” for critical vendors that includes metrics against which their performance is measured. You evaluate the work of your employees — why not do the same with your partners? It is in everyone’s best interest to have serious conversations on an ongoing basis with at least your most important partners. This gives you an opportunity to convey your concerns and highlight their contributions to your success.

Companies, like people, can and do change over time. Regular assessment and feedback go a long way to keeping expectations fresh and top of mind.

3: If you need to make a change, do it. 

Be clear and specific as to why you are making a change. Trust your instincts; if there is a consistent drop-off in the quality of work or negative change in transparency, respectful communication or engagement, consider making a change. Even a long-term relationship might need to end. Your vendor partners should earn each moment and never take your business for granted. They’re there to help you craft solutions and lend their support and expertise.

To summarize, choose your partners carefully, and treat them as valued elements that contribute to your success. Engage with them to make yourself better, and if the time comes to say goodbye, do so with clarity and respect. To quote a great president of the 20th century, “Trust, but verify.”

At Craft Bank, we believe that business banking should have a personal side. In a world dominated by impersonal conglomerates, we strive to be fully engaged humans. We invest in our clients’ goals, ask questions and build relationships because we believe banking isn’t just a service — it’s a partnership. Learn more at www.craft.bank.

Read the original article published in the Atlanta Business Chronicle.